Enter the initial price paid for a stock and the current dividend into the calculator to determine the yield on cost.
Yield on Cost Formula
The following formula is used to calculate the yield on cost.
YOC = CD/ IC *100
- Where YOC is the yield on cost (%)
- CD is the current dividend ($)
- IC is the initial cost of the stock ($)
Yield on Cost Definition
A yield on cost is defined as the ratio of the current dividend of a stock to it’s initial purchase price. In other words a return on a stock with respect to it’s dividend.
Yield on Cost Example
How to calculate yield on cost?
- First, determine the current dividend.
Calculate the current dividend per share.
- Next, determine the purchase price.
Calculate the initial purchase price of the stock.
- Finally, calculate the yield on cost.
Calculate the yield on cost using the formula above.
Yield on cost is a measure of the dividend yield based on the initial purchase price of a stock.